just alvin
December 14, 2024 01:52
CleanSpark, Inc. announced the pricing of a $550 million convertible note to strengthen its financial strategy and expand its Bitcoin mining operations.
CleanSpark, Inc. (Nasdaq: CLSK), a prominent player in Bitcoin mining, announced the pricing of a $550 million convertible note. The notes, which mature in 2030, carry a coupon of 0.00% and will be sold to qualified institutional buyers pursuant to Rule 144A of the Securities Act of 1933, according to CleanSpark.
Offering Details
The transaction includes a capped call with an initial cap price of $24.66, which is double the closing price of CleanSpark stock on December 12, 2024. The company also agreed to repurchase approximately $145 million of common stock from investors participating in the notes.
CleanSpark has offered the initial purchasers an option to purchase an additional $100 million of the notes, and the transaction is expected to close on December 17, 2024, subject to customary terms.
Use of Proceeds
Of the expected net proceeds of $535.9 million, CleanSpark plans to allocate $76.5 million to capped call transactions, $145 million to share repurchases and the remainder to debt service, capital expenditures and other corporate purposes. no see.
Convertible note function
The unsecured notes mature on June 15, 2030, with a conversion option available subject to certain conditions beginning December 15, 2029. The conversion rate is set at 67.5858 shares per $1,000 principal amount, resulting in a conversion price of $14.80 principal amount. A 20% premium is added to the stock price.
The repurchase option for the company will commence on June 20, 2028, depending on stock price performance, and allows holders to force repurchase under certain conditions.
Impact on Markets and Stocks
With respect to capped call trading, CleanSpark anticipates market activity that may impact stock and bond prices. The transaction aims to minimize dilution when converting notes.
As the company explores these financial strategies, it emphasizes its commitment to optimizing its operations and capital management to enhance shareholder value as the Bitcoin mining landscape evolves.
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